Expecting US Yield strength this week, and therefor USD strength
I think we're possibly seeing signs of a DXY reversal in the making.
USD performing better against some crosses this week (NZD / JPY), others failing to make new highs (GBP / EUR). CHF is smashing all at the moment, so interesting to see how this does against the USD this week (if it falls then this gives me even more confirmation).
I've seen RSI divergence on both GBP and EUR crosses highs in the last few weeks, another reason to look for more signs that they'll reverse.
We've broken the descending dynamic trendline (not for the first time mind, let's see if it holds), a retest comes straight into the order block, which if I'm right, will trigger some momentum.
We could have a double bottom on DXY (HTF) which could indicate a trend change (or start of more serious retracement at least). We could currently be creating an inverse H&S (LTF's).
Looking at the US 10 Year futures, we have signs of a reversal (MACD & RSI Divergence with broken neckline), this could indicate that the US10Y and other yields will go up.
We've had 5 weeks of falls, even though this doesn't mean anything, it just adds to my feeling that we're about to see a bounce.
I think the market is starting to expect continuation of the FED hawkish stance, pricing in hikes or no change, rather than cuts this year.
USD performing better against some crosses this week (NZD / JPY), others failing to make new highs (GBP / EUR). CHF is smashing all at the moment, so interesting to see how this does against the USD this week (if it falls then this gives me even more confirmation).
I've seen RSI divergence on both GBP and EUR crosses highs in the last few weeks, another reason to look for more signs that they'll reverse.
We've broken the descending dynamic trendline (not for the first time mind, let's see if it holds), a retest comes straight into the order block, which if I'm right, will trigger some momentum.
We could have a double bottom on DXY (HTF) which could indicate a trend change (or start of more serious retracement at least). We could currently be creating an inverse H&S (LTF's).
Looking at the US 10 Year futures, we have signs of a reversal (MACD & RSI Divergence with broken neckline), this could indicate that the US10Y and other yields will go up.
We've had 5 weeks of falls, even though this doesn't mean anything, it just adds to my feeling that we're about to see a bounce.
I think the market is starting to expect continuation of the FED hawkish stance, pricing in hikes or no change, rather than cuts this year.